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5 Property Management Strategy Tips for Success in 2022

While there are many strategic moves property managers can make to stay ahead, every operation should start with these 5 tips

5 Property Management Strategies to Grow Your Portfolio

The post Covid-19 real estate market is filled with promising growth opportunities for both property managers and owner-operators alike. According to a recent report by Forbes, current real estate conditions are favorable and are expected to exceed pre-pandemic levels through 2022.

Alternative assets research firm Preqin reports that real estate funds amassed huge investment stock piles in 2021. As the real estate market heats up, they are eager to use those funds to seize on new investment opportunities.

This trend toward increasing property investments presents the perfect opportunity for property management companies to grow their portfolios, and for property owners to find unique deals within the market. Despite this, the market is increasingly competitive and an evolving real estate market dictates that property management companies and owner-operators employ new strategies to stay ahead of the curve.

Traditional industry strategies are becoming increasingly inadequate to drive growth. If you want your property management company to thrive in this new real estate environment, you likely need to revamp your strategic approach.

If you’re a property manager looking to take advantage of the current booming real estate market and expand into new areas or property types…

Here are 5 property management strategies you can use to grow your portfolio.

#1: Modernize Your Tech Stack

Collaboration between property technology (proptech) companies and real estate firms has skyrocketed during the post-covid recovery. In 2021, proptech and real estate companies raised nearly $21 Billion. As a result, there are more software and digital solutions for property management than ever before.

This means that your tech stack - the group of technologies your company uses to manage its core functions - will play a critical role in your ability to grow your property management portfolio.

The first step of enhancing your tech stack involves a review of your current property management system software. For example, does your current software streamline your workflow by automating time-consuming tasks, such as maintenance tracking or rent collection?

In today’s tech-rich environment, there’s an app for nearly every task you can think of. Are you taking advantage of everything the proptech space has to offer?

At the bare-minimum, your property management software should include the following:

Improving your existing tech stack will allow your company to take on more properties without needing to hire more staff. It will also improve your lead generation and customer acquisition.

#2: Diversify Your Marketing Strategy

There’s heavy competition in the property management space, and it’s increasing year after year. In order to stand-out from the crowd, your company needs to diversify its marketing strategy.

A modern marketing strategy dictates that your company employs a diverse mix of media and the right technologies to harness the potential of each one. Furthermore, any property management marketing tool that your firm implements will need to integrate well with your tech stack to deliver its associated benefits, for example with Hot Pads, Zillow, Rent Prep or Panda Doc.

The first step to improving your marketing strategy is to increase your digital presence. This involves optimizing your website for search engines (SEO). If you haven’t already, incorporate a blog into your website and post regularly. Create content that addresses the needs of potential clients, whether it be for other real estate owners or prospective tenants.

Your company’s marketing strategy should also use multimedia. Incorporate video, images, and even audio into your marketing campaigns. Consider starting a YouTube channel and a podcast to improve your company’s brand and attract your ideal clients.

Lastly, expand your social media presence beyond Facebook. Property management companies are increasingly using multiple social media platforms to reach new clients, including Instagram, Tik Tok, and Reddit.

#3: Research Best Practices of Top Property Management Companies

The 3rd property management strategy to grow your portfolio is to do your homework and stay abreast of the industry’s best practices.

Research top-performing property management companies to gain an understanding of the tools and tactics driving their performance. What does their marketing strategy look like? How have they organized their company infrastructure? What additional services do they offer to their clients? For owner-operators, research what type of deals your competitors have been making, what market they’re being made in, and what margins to capitalize on within the current market landscape.

Adjust your company’s practices in whatever areas you fall short. Additionally, dedicate some time and resources to innovation. Do you see any trends in the industry that can be improved upon? Can you think of any practices or services no other company has thought to implement yet?

Some of the most common services property owners want a property management company to handle include:

  • Marketing the property for rent
  • Evaluating the property to determine an accurate rental rate
  • Screening and selecting tenants
  • Collecting rent
  • Drawing up lease agreements
  • Eviction paperwork, if necessary
  • Legal advice
  • Performing inspections
  • Financial services such as accounting and mortgage payments
  • Maintenance, repairs, and remodeling
  • Interior design and staging
  • Insurance services
  • Investment advice
  • Analytics to increase profitability

Are there items on this list your property management company isn’t offering? If so, set a goal to start incorporating additional services over the next few years.

#4: Expand Your Network

Another key component to growing your portfolio is finding new clients, and this requires expanding your network.

There are two main approaches you can take to expand your network.

The first approach is to leverage your existing relationships for referrals. If you maintain good customer-relationships, it shouldn’t be too difficult to ask for recommendations for other property owners who need management services.

Outside of your clients, keep up with other real estate professionals you know, like brokers and developers, who are constantly in touch with prospective property buyers who may soon need management services.

The second approach is to bring in new real estate professionals and clients through cold communication methods. Cold-calling and cold emailing remain an effective strategy for client acquisition. Your firm can use various software solutions to automate these tasks and cut down on time.  

#5: Study the Market

The 5th and final strategy to grow your property management portfolio is to study the market and take advantage of what you learn.

Most top-performing property management companies devote significant resources to market analysis in order to stay competitive. By studying the market, you can discover new growth opportunities within your niche or familiarize yourself with other markets where you want to expand.

A good starting point is to research other properties in your service areas and gather the following information:

  • Typical tenant profile: age, profession, length of tenancy, families vs. singles
  • Surrounding community resources (schools, supermarkets, parks, public transportation, etc.)
  • Renter vs. Owner market
  • Average rental rate in the area
  • Average vacancy rate
  • Number of days on the market, per unit

Based on the information you collect, you should be able to answer critical questions, like: are there opportunities to raise rent? Are there any pending municipal development plans that will attract new property investment?

A comprehensive view of the market will give you the best chance of capitalizing on changing trends and future developments. 

When all is said and done, there are countless ways to constantly evolve and improve your operations, but these methods are tried and true, whether you self-operate your rental properties or are a third-party property management company working on behalf of other real estate owners. 

For many smaller and medium-sized operations, improving most of these processes begins with utilizing the right property management software.

Interested in property management software?

Sign up for Rentroom today, or Book a Demo with one of our account executives.